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I think we can assume we have the reason - emphasis mine (no working capital = no money)
Wendy
Kent News 23 Aug 2012
Is axe hanging of the Hop Farm Festival for 2013?
Promoters refuse to confirm if Paddock Wood event will return next year
The future of the Hop Farm Festival appears to hang in the balance after organisers this week refused to confirm it would be returning in 2013.
The three-day event attracts tens of thousands of music fans each year and marked its fifth anniversary earlier this summer.
But the team behind the event this week refused to confirm the festival would be returning next year.
It came as two shows by the legendary Leonard Cohen were this week uprooted from the Paddock Wood venue and will be held, instead, at London’s Wembley Arena.
In a statement confirming the shows were moving out of Kent due to “unforeseen circumstances”, it was stressed there was no issue with its “suitability as a venue” - suggesting, instead, there were problems behind the scenes.
Earlier this month, Music Festivals, the listed company run by promoter Vince Power which is behind the Hop Farm Festival and the popular Spanish festival, Benicassim, issued a warning it would return losses due to poor ticket sales of the Kent event.
In a statement to shareholders it confirmed: “The group was particularly impacted by weaker than expected ticket sales at the Hop Farm Music Festival which was loss-making. The Benicassim festival continued to be profitable but at a much lower level than 2011.
“As a result, the group currently expects to report a material loss for the year ending December 31 and
is exploring ways of raising additional working capital.”
Dire weather leading up to the event had been a major thorn in the side of promoters, as well as a busy summer which had seen the Queen’s Diamond Jubilee celebrations and a build-up towards the Olympic Games.
In addition, despite being one of the more competively priced festivals, the squeeze on spending due to the economy caused problems for many of the biggest names who struggled to sell-out; despite the absence this year of Glastonbury.
It would be a huge blow for the county’s music scene were the festival not to return.
Despite what was widely perceived as a lack-lustre line-up this year, with the likes of Bob Dylan, Suede and Peter Gabriel headlining, the year before had been hailed as one of the year’s best with the likes of The Eagles, Morrissey and Prince performing.
When we asked a spokesman for Vince Power to confirm the Hop Farm Festival would return for 2013, he said: “Sorry but I can’t comment further on that at this time.
“I can confirm the venue for the two Leonard Cohen performances has been moved to Wembley Arena. The concerts will be jointly promoted by AEG Live and Music Festivals PLC.
“The decision to change the venue has nothing to do with the suitability of Hop Farm as a venue. Wembley Arena is a world class venue and being an indoor arena offers protection from the unseasonal cold and wet weather this summer.
“All ticket holders will be entitled to either a full refund or a top seat at Wembley Arena.”
Vince Power said “I would like to apologise to all the customers who have already bought tickets and hope they can still enjoy what’s going to be amazing shows at Wembley Arena.”
The news of Leonard Cohen’s shows being moved - a little over two weeks before they were due to take place - surprised many.
The opening night was already a sell-out and tickets were believed to be selling well for the second night.
